School of Medicine and Public Health - Dual Employed (UW-Madison and UW Medical Foundation) Faculty Relocation for Clinical Departments

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Policy Number:
SMPH-3020
Responsible Office:
SMPH Office of Fiscal Affairs

School of Medicine and Public Health (SMPH) Policy

Rationale/​Purpose:

The purpose of this policy is to define and establish School of Medicine and Public Health (SMPH) requirements for the procurement and payment of faculty household relocations and costs associated with temporary and indefinite work assignments.

Definitions:
Approving Authority
Delegated SMPH Dean or director who approves relocation stipends.
Authorization Letter
A letter that specifically outlines and approves university funding for relocation expense types and amounts, including employee relocation stipends.
Clinical Department
SMPH has 17 clinical departments within the school. These are Anesthesiology, Dermatology, Emergency Medicine, Family Medicine and Community Health, Human Oncology, Medicine, Neurological Surgery, Neurology, Obstetrics and Gynecology, Ophthalmology and Visual Sciences, Orthopedics and Rehabilitation, Pathology and Laboratory Medicine, Pediatrics, Psychiatry, Radiology, Surgery and Urology.
Faculty
Dual employed (UW-Madison and UW Medical Foundation) Professors, Associate Professors and Assistant Professors on the Tenure, CHS, CT tracks.  
Household Relocation Stipend
$13,000 lump sum, tax reportable payment for household relocation costs.
Onsite Work Location/City
The city where most of the important functions of an organization, or an employee’s job responsibilities, are coordinated (known as headquarter city).
Tax Home
The city or general vicinity where an employee’s primary place of business or work is located, regardless of the location of the employee’s residence.  Tax home will have an effect on the employee’s tax deductions for business travel.
Scope:

Relocation

Relocation stipends for faculty may be provided dependent on the availability of funding. The following policy provisions will determine the total amount provided for relocation. The relocation stipend is separate from applicable recruitment (signing) bonus and outside of any department compensation plan.

Relocation expenses for faculty only employed by SMPH, should follow the UW-3079 Relocation Policy.

Taxable Stipend

In accordance with IRS regulations, effective January 1, 2018, payment of any relocation costs under this policy is considered taxable income and subject to applicable income and employment taxes.

Eligibility

At the discretion of SMPH, a relocation stipend may be authorized for new faculty.

  1. The relocation stipend is mandatory when the hiring department requires the employee to change residence location because the job duties require the employee to work onsite.
  2. The relocation stipend is on a permissive basis, as recommended by the hiring department, for an employee reporting to their first place of employment within SMPH or reporting upon reemployment after leaving SMPH.
  3. The relocation stipend will be allowed if the distance between the new place of employment and the old residence is at least 35 miles farther than the distance between the former place of employment and the former residence, and the distance between the new and former residence is at least 35 miles. If the hiring department determines that a relocation is a mandatory condition of employment, the minimum distance requirements are not applicable.
  4. The faculty member’s appointment must be at least two years in length to qualify for relocation.
  5. Unless otherwise authorized by the hiring department, to be eligible for the relocation stipend, the employee must move no later than two years from the effective date of the appointment.
Policy:

Payment of Relocation Stipend

The University may pay a relocation stipend as noted below:

  • The University may provide a faculty member in a clinical department a relocation stipend at a fixed amount of $13,000 per household (subject to tax), for costs associated with a relocation, whether using a commercial moving service or choosing to self-move. This amount will be reviewed periodically and may be adjusted based on inflation and other considerations.
  • An employee relocation stipend is paid not more than 30 days in advance of the employee’s relocation date (not hire date). There is an exception process to exceed the fixed amount stated above. See Relocation Guidelines for details on the exception process. 
  • If the employee leaves within the first year, the full stipend is to be paid back.
  • If they leave within the second year, 50% of the relocation stipend will need to be paid back.
  • Domestic partner recruits are considered one household.
  • Expense of the stipend will be shared between the two SMPH departments/divisions.
  • If an employee is being hired with multiple department appointments, the allocation of the stipend responsibility will be negotiated among the units.

Temporary Lodging, Piecemeal Moves

The hiring department will not provide any additional reimbursement for temporary lodging to an employee. The payment will be distributed one time and wont be split due to piecemeal moves unless an exception is approved.

Institutional Responsibility

Prior to the move, the hiring department must authorize in writing the payment of an employee relocation stipend. See the university policy for specifics on what is required when approving a relocation stipend within the University.

Tax Reporting and Compliance

For relocation reimbursement tax withholding and reporting please refer to Fringe Benefit Tax Reporting.

Responsibility of the Employee

Employees are responsible for completing the tasks outlined in the Relocation Guidelines document.

Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:

Policy Administration

Approval Authority:
Dean, School of Medicine and Public Health
Policy Manager:
Director of Talent Management
Contact:
SMPH Finance Associate Director -- Heather Richter, hjrichter@wisc.edu, (608) 263-7765
Director of Talent Management -- Kristen Seguin, kvieth@wisc.edu, (608) 262-7705
Effective Date:
08-01-2022
Date Issued:
07-15-2022
Retrieved:
04-18-2024 17:33:41